Research Solutions (RSSS) Q4 2026 earnings summary

Executive summary

• Achieved 14% B2B ARR growth and increased high-margin platform revenue to over 43% of total revenue year-over-year, driving margin expansion.

• Achieved record fiscal year net income of $2.8 million, more than doubling year-over-year.

• Released multiple new AI products, driving $800,000 in Q4 AI-related bookings and building a robust pipeline for FY 2027.

• Improved sales process, expanded sales headcount, and implemented tools to enhance customer health and renewal rates.

Financial highlights

• Fiscal 2026 revenue was $48.3M, down 1.5% YoY, with platform revenue up 9.8% to $20.8M and transaction revenue down 8.7% to $27.5M.

• Gross margin for FY 2026 was 51.9%, up 260 bps YoY; platform gross margin was 87.5%.

• Net income for FY 2026 was $2.8M ($0.09/share), up from $1.3M ($0.04/share) YoY; adjusted EBITDA reached $5.8M, up 10.6% YoY.

• Cash and equivalents at year-end were $12.6M, up from $12.2M YoY; cash flow from operations was $5.3M, down from $7M FY25 due to working capital timing.

• Q4 revenue was $12.1M, down from $12.4M YoY; Q4 gross margin hit a record 53%.

Outlook and guidance

• Expects continued platform subscription growth, improved retention, and further stabilization in transactions for FY 2027.

• Anticipates strong B2B sales and AI product momentum, with B2C remaining flat and transaction revenue facing low single-digit declines.

• Projects improved EBITDA and cash flows in FY 2027, with no major acquisitions planned short-term.

• Management highlighted a strong cash position and Adjusted EBITDA, supporting continued investment in internal development and strategic M&A.

• A large pipeline of AI-related revenue opportunities is expected in FY27, driven by recent product launches.